The Benefits of Obtaining a Tax Residency in UAE

Tax residents in the United Arab Emirates (UAE) enjoy a multitude of benefits, including tax exemptions, low corporate taxes, access to free trade zones, visa-free travel, and a high quality of life. One of the most significant advantages of tax residency in the UAE is the issuance of a Tax Residency Certificate (TRC).

A TRC is a document issued by the UAE Federal Tax Authority (FTA) that confirms an individual’s or company’s tax residency in the UAE. This certificate is essential for claiming specific tax benefits, such as exemptions from personal income tax and capital gains tax.

Who is eligible for a Tax Residency Certificate in the UAE?

The eligibility criteria for a TRC vary depending on whether the applicant is an individual or a company.

A. Individuals

To be eligible for a TRC as an individual, you must meet the following criteria:

• You must have been physically present in the UAE for at least 90 Days(domestic)/ 183 (International) days in the period of application a year.
• You must have a residence in UAE with minimum of one year.

B. Companies

To be eligible for a TRC as a company, you must meet the following criteria:

• The company must be legally established within the UAE.
• The company must be one year after incorporation.

UAE Tax Residency Certificate Benefits

Preventing Double Taxation: The TRC offers individuals and businesses the advantage of avoiding taxation on the same income in both their home country and the UAE.

Tax exemption: In the UAE, income taxes, capital gains taxes, and inheritance, capital gains or inheritance taxes can benefit All individuals and families.

Corporate Tax Advantage: The UAE presents a highly appealing jurisdiction for businesses worldwide due to its exceptionally low corporate tax rate, which stands at 9%.

Free trade zones: Freezone Companies and mainland companies are eligible for the TRC.

High quality of life: The UAE offers a high quality of life with excellent infrastructure, healthcare, and education.

Conclusion

The UAE offers several benefits for tax residents, including tax exemption, low corporate tax, free trade zones, visa-free travel, and a high quality of life. If you are considering obtaining a tax residency in the UAE, speaking with a tax advisor is important to learn more about the requirements and benefits.

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